Biogas for Enabling Private Sector Growth and Equity in Senegal and the sub region in NEPAD Workshop « African BioEnergy Investment in West Africa » 30-31 Août 2012, Dakar.

Abstract of the business plan presentation

• Description of problem and/or business opportunity

The Senegalese energy sector is faced with a chronic supply shortage, rusting generating capacity and a complete dependency on imported oil with rising price and uncertainties on supplies. While the demand for power is growing at 10% rate per year, Senegalese citizens and corporate suffer increasing power cuts resulting in high production cost and losses for the private sector. Energy costs account for 35 % (average) of the industrial production cost against 15% in South East Asia; penalising the overall productivity and performance of the private sector. The situation calls for the needs to diversify energy supply, especially by taping into the renewable resources such as biogas.

• Objective of the  project

The project aims to improve the first Senegalese company specialised in industrial scale biogas installation. Indeed Senegal has a wealth of untapped resources from animal, agricultural and human waste that can be converted into biogas for multiple uses: electricity, cooling, heating and cooking. The project will market turn key biogas plants to a variety of customers such as municipal abattoirs, waste handling and management companies, diary farms, agro processing industries, rice processors, water recycling plants, villages electrification schemes, etc… by the sale and installation of 8 biogas plants of a nominal capacity of 40 kW each at least.

• Equipment and training

The pilot phase will deal with the development of 40 kW capacity biogas plant using cow dung and agricultural waste to generate 400 kWh electricity for a diary farm. This project will serves as a venue for marketing and training for unlocking the potential for biogas plants market in Senegal. The equipments will include a  (i) concrete insulated  silo with heating tubes, mixer and roofing structure that will be constructed locally; (ii) a mixing pit or silo for directing the manure into the digester; ( iii) a CHP-unit (gas engine and generator set) with emergency cooler and required electrical connections; (iv) an overflow tank for the waste that can be used as natural fertiliser. The training includes all the technical aspects for building biodigesters, energy conversion, operational procedures, repair and maintenance.

• Partnership

To carry out his project, C3E Ltd., has established a partnership with THECOGAS BV, a Dutch company. Thecogas BV (www.thecogas.nl) is the specialist for the turn-key  biogas plants. With the successful completion of over 40 biogas plants over the past five years, an enormous amount of experience has been gathered which has resulted in a simple, easy-to-handle and well proven design which can be build and maintained by local contractors.

The Senegalese Compagnie des Eaux, de l’Energie et de l’Environnement, in short C3E SARL, is specialised in the engineering and development renewable energy projects in Senegal. The company is developing several solar, wind and biomass projects for grid integration, rural electrification and water provision.

A consortium between the two companies was created and named THECOGAS SENEGAL SARL

• The history of the relationship between the Project Partners

Mr Piet Visser, senior expert of Thecogas has worked several times with Lamine Ndiaye, manager and founder of C3E. Mr Visser has regulars work visits in Senegal in the last 10 years. During the visit of November 2006 in Senegal, several companies have shown interest in acquiring biogas installations for electricity and heat generation. The underlined proposal is a direct response to the Senegalese demand for technology and know-how.

• Project objective and implementation strategy

The JV Company will be specialised in the marketing and delivery of turn key biogas installations for electricity and heat generation to a variety of industrial companies, farming businesses and communities, government institutions, municipalities, schools, hospitals and individual users. Basically all the companies, institutions and communities having critical amount of biomass waste can be a potential customer. The types of feedstock that are largelly available include manure, rice straw, aquatic plants, agricultural residues (peanuts, millet, corn…), land fields, abattoir waste, waste water and other water based effluents.

The JV will develop   the first industrial scale biogas plant in the country for electricity generation. The plant will be used as venue for technology demonstration for marketing biogas plants to all the potential customers. It is important to note that industrial scale biogas is new to Senegal; therefore it will be marketed only by enabling potential customer to see and experience an existing plant. Experience have shown that abstract marketing concepts (folder, films, etc…) has a limited impact in forging investment decision in biogas as peoples like to see and experience before taking the decision to purchase a product.

The plant will be equally used as training venue for technicians and demonstration for policy makers and potential buyers.

• How to proceed?

While we realize your turnkey installation, the path to your installation involves the following phases:

1. Contact and preliminary contract: After contacting us, you will receive a preliminary contract that you must sign mandatory in fact it is your expression of interest;
2. Our experts then go home to examine the prerequisites for installing and inventory
3. If the conditions are met (availability of land and raw materials especially in sufficient quantity and quality), we offer you a trade sanctioned by a contract to sign on the spot
4. The construction phase and control of electrical commence as soon as the deposit specified in the contract is paid. Depending on the size of the digester, it can take up to 6 months to deliver installation
5. during the construction phase, your staff is trained in the operation and preventive maintenance of the facility;
6. We provide regular monitoring and service after the warranty wind plant operation

• Economy and Finance

Financially, a biogas plant is profitable because the  owners installation can use their own power to replace the national electricity network. Also, when the regulatory framework allows, it is possible to inject energy to the power grid, against an enumeration provided a number of years .

More heat from the plant can be used for its own purposes and therefore save fuel when being sold for agricultural infrastructure and industrial communities such as swimming pools, schools and hospitals.

• The advantages at a glance:

1. Biogas is a source of electricity at a constant price, independent of network
2. Biogas provides a source of heat at a constant price
3. the current can be injected into the electricity grid at a guaranteed price
4. digestat is the best fertilizer: nutrients can be made available to plants as improved and greatly reduce odors.
5. The energy recovery rate is very high (75%, inclusive heat)
6. Biogas can be stored, and thus be available to cover peak needs
7. Installing biogas can be operated regardless of weather conditions, unlike solar or wind.

• Cost of a biogas power plan

Investments for a biogas plant depend on the size, the site, the waste to be treated and the level of equipment and automation. The table below gives an indication of the very global investments that must be provided. Thus, the indication of the cost per kWh generated is very comprehensive. It should be noted that the cost of kwh does not take into account the value of the substrate indicating the cost of kWh cost is exclusive of substrates.

• Cost of a biogas plant

Dr. LAMINE NDIAYE  CEO

Tel : +221708021250
Website : www.compagnie3e.com
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